Critical issues of intellectual capital theory in transitional countries

Abstract

Since the independence of Kazakhstan over 20 years ago a large number of political reforms took place to modernize the institutional structures and to establish a modern business environment for facilitating foreign investments and privatization programs. Between 2001 and 2008 the GDP growth rates were over 10 % per year and even after the crisis of 2008 the Kazakh growth rates were positive in contrast with that of Commonwealth of Independent States neighbors so that in 2011 the World Economic Forum determined Kazakhstan’s economy as transitional from factor driven to efficiency driven. Despite Kazakhstan’s big steps ahead in the improvements of the macro-economic environment the most problematic areas are related to innovation and business sophistication. So innovation capacity and intellectual capital are still low ranked, i.e. technical and managerial skill, research capacity and effective university–industry cooperation are only weakly developed. The purpose of this paper is application of intellectual capital (IC) approach for developing a strategic management model as a means of organizational transformation within the context of transitional economy at Kazakh mining company. The Kazakh government is committed to tackling the difficulties of “radical” change by putting in practice new economic and political reforms; for innovative and creative thinking, however, such change is challenging. The current perception of IC as an intangible asset by senior and middle management of the Kazakh mining company is explored and a model of strategic management for company’s transformation from a “mechanistic” to a “learning” organization is examined in a case study.